New homes: options for ownership (From York Press)

New homes: options for ownership

11:53am Thursday 18th March 2010

It’s been a tough time for both housebuilders and home-buyers over the last year as the effects of the recession made themselves known.

But there is growing evidence that the new homes market is on the up with several companies reporting “a return of consumer confidence” – which, in plain English, means more people taking the plunge and buying houses.

It has not, however, been an easy process… and behind the surge in confidence are considerable efforts by both developers and the Government to boost sales.

One of the most interesting – and successful – of those initiatives has been the HomeBuyDirect scheme.

Under this government initiative, households with a joint income below £60,000 and able to raise a small deposit can secure a mortgage for 70 per cent of a house purchase price – with the remaining 30 per cent made up by an interest-free loan, the repayments on which do not begin for five years.

The 30 per cent loan is co-funded by the Government and individual house-building companies.

The scheme has proven remarkably popular. Barratt Homes, for instance, has just seen its 200th HomeBuyDirect sale.

The company’s regional managing director John Reed said: “This scheme can significantly reduce the initial cost of house purchase and hugely increases your chances of buying your first property because a smaller mortgage is required and monthly repayments are much more affordable.”

York-based Persimmon Homes is also seeing more people take advantage of the scheme.

Andrew Bowes, Persimmon Yorkshire managing director, says: “We are urging home-buyers to reconsider the benefits of schemes such as part exchange and HomeBuyDirect before they make the move. We welcome anyone to come and meet with our sales advisers on site and talk through the options available.”

Andrew also believes that, alongside HomeBuyDirect, schemes such as Persimmon’s part exchange project are boosting the market.

“We hear stories daily from people who’ve missed out on their dream property due to the length of time contracts have taken to exchange in a chain. Our part exchange scheme has been developed to offer people a quicker way to sell their existing homes and move into one of our new properties.”

The extra efforts appear to be paying off. Persimmon are recording record numbers of visitors to their sites in Yorkshire. These include…

Prospect Farm, in Thirsk Road in Easingwold which offers a range of three bedroom semi-detached and four bedroom detached properties with prices starting at £239,999.

The Kings Court development which consists of two, three and four bedroom homes in an established community in Market Weighton. Here, the most sought after house type, The Chester, has generated an increased amount of interest among local homeowners, especially families who have outgrown their current property and are in desperate need of extra room space. The four bedroom, semi detached property is available for just £179,999, a reduction of £25,000 on the list price.

Staynor Hall on Bawtry Road in Selby where Persimmon recently launched its newshowhome, the Farroll, which is a four bedroomed home with a large lounge, dining and kitchen area and an ensuite bathroom to the master bedroom.